Electric Vehicles (EV) & Resource Planning

Adopted Austin Energy Resource, Generation and Climate Protection Plan to 2025

Includes the following complementary strategy:

• Expand efforts to increase electric vehicle utilization and,

• facilitate integration of electric vehicles in the utility service area and,

• Utilize these vehicles as a valid distributed storage technology.

Austin Community Climate Protection Plan

• Greenhouse gas emissions from transportation are relevant and significant

• Most emissions are from personal vehicles

Austin Community Climate Protection Plan

Austin Community Climate Protection Plan

• 1,000,000 registered vehicles in Travis County

• Greenhouse gas emission reduction target of 25% each 10 years

• What is necessary to meet this goal?• 250,000 EVs by 2020

• 500,000 EVs by 2030

• …

ERCOT LTSA Projections

1,000,000 to

3,000,000 EVs in Texas by 2030

Which equates to 70,000 –210,000 EVs in the Austin

ERCOT could use EV as a Resource

• ERCOT Long Term System Assessment Report: wind and solar can meet demand most hours of the day

• Problematic hours are between 7pm and 11pm when solar ramps down and wind does not ramp up enough

• DR in combination with EV’s can easily fill this gap

• Something similar needed for Austin Energy to meet NET-ZERO by 2030 goal set by City Council

Proposed recommendationThe Joint Sustainability Committee moves that

The Electric Utility Commission Resource Planning Working Group adopt a goal of 100,000 Electric Vehicles in Travis County by 2025 and 50% of all vehicles by 2030, and that,

the City Manager be directed to issue an RFP to develop a plan by the second quarter of 2017 to achieve the 2025 goal.

EVs as a Resource

Recommendation to the EUC Working Group

With the need for a significant contribution of EVs to meet the goals laid down in the Austin Community Climate Plan, and

With the unique opportunity of having a municipal utility

Start a planning/implementation process to define the :

• value for Austin Energy rate payers

• role that EVs can play in Resource Planning for 100,000 and 250,000 EV market

• impact on infrastructure and capital program (expenditure and savings)

• roadmap to leverage this opportunity

Austin Energy agrees that a comprehensive study is required

Austin Energy Sathibabu Chakka | Manager, Energy Market Analysis stated, when asked about the impact on resource planning whether

Austin Energy is working on a scenario that would include 250,000

“… we are also interested in the application of EV; however, we believe this is a topic that is more apt for the next update of the resource plan, which is slated for 2018. We believe that to perform a comprehensive study of EV requires, 6 - 12 months of detail modeling and understanding of EV…”.

EVs as a Resource

• Allows for higher integration of renewables (low price charging; resolve intermittence)

• Higher capacity factors for non-renewable resources (see graph)

• Low risk resource (small unit size, not fuel-based, short lifespan)

• Always latest technology (short lifespan compared to other resources)

• Carbon-free resource (impossible to meet ACCP goals without EVs)

• Drought resistant (no water footprint)

Business case for EVs

With current technology (now)

• Value of additional kWh sales (30% of current sales)

• Value of 2nd use of car batteries for grid services (80% of capacity

retained, ….)

• Value of smart charging using TOU rates (low ERCOT prices, …)

Business case for EVs

With almost available technology (short term)

Demand Response controlled by Austin Energy like with the NEST thermostat

• Value of Smart Charging combined with Dynamic Pricing (low ERCOT prices, not adding to peak demand)

Austin Energy rebate program for chargers already includes a stipulation that Austin Energy is allowed to make chargers Wi-Fi enabled.

Business case for EVs

With V2G technology (mid term)

• Value of smart discharge (fast response, non-fuel based, scaleable)

• Value of scaling down grid improvements (capital program savings)

• Value of spinning reserve (EV-car lots)

• Etc.

There are over 15 value elements to storage which benefit either the grid operator, the utility or the customer

V2G pilots

There are several pilots for V2G through the US military and in Europe (UK, NL, D, DK)

Players are Nissan, NRG, ENEL, Nuvve

• Takao Asami, Nissan senior vice president, said. “Before we had the concern about the degradation of the battery — that’s why we had to limit the amount of energy we could pull out of the vehicle,” he told GTM. “But year by year, this durability is being improved.”

Business case for EVs

New Business Model (now)

• Value of car purchase/loan/leasing (commission)

Similar to PEC solar loans for up to $20,000 with 10-year terms. Customers can finance grid-tied distributed energy resource (DER) systems, including distributed solar and grid-tied battery storage installed by one of the ten participating local vendors. PEC members can repay the loan through monthly installments thanks to on-bill financing.

100,000 EVs, using 40% of

battery capacity delivers 1600 MW Peak Capacity for an

hour

Austin Energy Peak Demand

2700 MW

Financing 100,000 EVs, using muni bonds has a value of $500-

$1000 per car per lease or $50-$100 Million

When all cars in Travis County are

electric this will add sales of 4 TWh worth over $400

million

Current Austin Energy sales

12 TWh

Reuse of the same batteriesusing 70% of battery capacity

delivers 2100 MW Peak

Capacity for an hour

Value of arbitration

$60 million

1,000,000 registered vehicles

in Travis County; 300,000change hands every year;

100,000-130,000 new cars

sold each year

Average lifespan of a car in the

US is 11 years

ERCOT expects between 1-3 million EVs by 2030;

Austin represents 7% of TX

market; equal share would be

70-210,000 EVs by 2030Fuel savings for 100,000 EVs

$80 million

Fuel savings for 100,000 EVs

$80 million

100,000 EVs, using 40% of

battery capacity delivers 1600 MW Peak Capacity for an

hour

Austin Energy Peak Demand

2700 MW

Financing 100,000 EVs, using muni bonds has a value of $500-

$1000 per car per lease or $50-$100 Million

When all cars in Travis County are

electric this will add sales of 4 TWh worth over $400

million

Current Austin Energy sales

12 TWh

Reuse of the same batteriesusing 70% of battery capacity

delivers 2100 MW Peak

Capacity for an hour

Value of arbitration

$60 million

1,000,000 registered vehicles

in Travis County; 300,000change hands every year;

100,000-130,000 new cars

sold each year

Average lifespan of a car in the

US is 11 years

ERCOT expects between 1-3 million EVs by 2030;

Austin represents 7% of TX

market; equal share would be

70-210,000 EVs by 2030

$500/y/EV

$1,250/lifetime/EV

$500/y/EV

$5,000/lifetime/EV

$500/y/EV

$5,000/lifetime/EV

$800/y/EV

$8,000/lifetime/EV

Ambition – is this happening?

• Countries sales and targets• 35% of all cars sold in Norway are EV today• All cars EV by 2030 in Norway • All cars EV by 2035 in The Netherlands (1 charging station per 4 PHEV/EV)

• City EV targets• Portland targets 50,000 EVs by 2030

• Car manufactures• For Motor Company: Investments line-up to over 50% EV sales by 2030• Daimler CEO Dieter Zetsche expects electric vehicles will make up 15-25

percent of Mercedes sales by 2025• Volkswagen: EVs account for almost 25% of sales by 2025• Volvo plans to go all-electric, sets a goal to make 1 million electric cars by

2025

Recommendation to the EUC Working Group

With the need for a significant contribution of EVs to meet the goals laid down in the Austin Community Climate Plan, and

With the unique opportunity of having a municipal utility

Start a planning/implementation process to define the :

• value for Austin Energy rate payers

• role that EVs can play in Resource Planning for 100,000 and 250,000 EV market

• impact on infrastructure and capital program (expenditure and savings)

• roadmap to leverage this opportunity

Back-up

Time of Use Rates

• Most charging happens at night

• Small percentage of charging happens during the early evening ours

• Time of use rates reduce charging when the utility does not want it, and increases charging when it encourages charging

Value of Storage: 15 components

From RMI, 2105 THE ECONOMICS OF BATTERY ENERGY STORAG E; HOW MULTI-USE, CUSTOMER-SITED BATTERIES DELIVER THE MOST SERVICES AND VALUE TO CUSTOMERS AND THE GRID

Used by PG&E: Electricity Business Models of the Future 2016 Austin Electricity Conference Dan Halperin Director, Distributed Generation April 21, 2016

Austin Energy has not studied all 15 components, also not in combination with large penetration of Evs. Austin Energy does not incentivize home storage for any of the four components under customer service. The Austin Shines project covers some of these components.

Inevitability

Three phases of EV Utility Policies

1. Removing barriers

2. Charging infrastructure and Equity

3. Capture Value of Grid Services and Integrating Renewable Energy

Where is Austin Energy

EV as a Resource

DR in combination with EV’s can fill this gap

• Austin Energy peak demand: • ~2700 MW

• EVs capacity:• 100,000 = 1600 MW

• 250,000 = 4000 MW

Potential new revenue

ERCOT market value historically (not having to pay for this amount of power on peak)

10,000 cars

value (million

dollars)

dollars per car per

year

100,000 cars

value (million

dollars)

dollars per car

per year

250,000 cars value

(million dollars)

dollars per car

per year

2011 12 1,205 121 1,212 260 1,038

2012 5 459 45 454 103 413

2013 5 522 51 512 122 487

2014 5 545 52 521 128 512

2015 4 441 43 432 103 412